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September 17, 2015

Uber appeals class action status in lawsuit over driver compensation

by John_A

Uber Tops Taxis

Californian Uber drivers may have won class action status in a lawsuit demanding that they be treated like employees rather than contractors, but Uber isn’t about to let this decision go without a fight. It’s appealing the class action ruling on the grounds that there isn’t really such a thing as a common Uber driver. They all operate differently, the ridesharing service says. Moreover, treating drivers as employees would supposedly force drivers to give up their flexible hours.

Companies try to shoot down class action lawsuits all the time — these cases are typically costlier, and harder to settle out of court. However, Uber has more motivation than most to avoid facing an entire group of complaints. If the class action lawsuit prevails, Uber might be compelled to treat all its Californian drivers as employees, with the benefits and compensation that this entails. The firm’s very business model is built on minimizing the cost of recruiting drivers — it’s going to deal with a lot more overhead if it has to pay for fuel, health care and other expenses.

[Image credit: AP Photo/Jeff Chiu]

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Tags: california, classaction, lawsuit, ridesharing, transportation, uber

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